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Why change management should be a top priority

2014-09-01  作者:BY JOY E. TAYLOR AND MONICA MORGAN

Charles Darwin once said, “It is not the strongest that survives, nor the most intelligent; But rather the one that is most adaptable to change.”

 

Clearly he was a visionary-the scientist who defined evolution and its importance in understanding how human beings work. On many occasions, we sit and wonder, does anyone else truly understand that change will happen and that change management is a priority?

 

The only place where the profession of change management consistently operates at the highest level appears to be in the world of politics. By tracking the workings of the White House via your favorite news source or by watching a few episodes of The West Wing, House of Cards, or even Scandal, readers and viewers alike quickly understand the connection. Do people really think events materialize by happenstance? Or that people who start out resisting something new accidentally change their minds? On the contrary, as depicted in these series,  countless hours of research are conducted, stakeholder maps are detailed, communication strategies are worked and reworked, messages and messengers are tested and rehearsed, and delivery channels are leveraged. All of this is orchestrated by teams of people who specialize in change management. So if companies want transformational change to take place with the precision of these political engagements, then we strongly suggest elevating change management and fully engaging these specialists when the desired change is a twinkle in the board's or management committee's eye.

 

Today, senior managers representing all major industries are talking "big" about making transformational change-meaning changing the way they work with their customers, changing the speed at which they access data and make decisions, and even altering an organization's culture in order to encourage and sustain innovative solutions. A 2010 survey by Innosight found that companies listed on the S&P 500 Index in 1960 stayed on that list for approximately 61 years. By 1980, companies survived on the index for approximately 25 years, and by 2010, companies endured on the S&P 500 for only 18 years. If this trend continues, 75% of companies currently listed on the S&P 500 Index will not be there in 2030. Clearly, it is becoming harder and harder for companies to survive at the top, but we argue that taking charge of how change happens can be a differentiator.

 

Sadly, change management has become a label that is often used but rarely understood. Too many people see change management as "code" for an organization that is about to take cost cutting measures or restructure.

 

KEEP THE VISION CLEAR

Presently, when organizations kick off a transformation effort, they often neglect to share the story of the change with the people. Transformational change may take years-many years, in fact. People will buy into the short- and long-term plan as long as they share in the future vision and the benefits.

 

Knowing this, you must prepare your senior managers to respond to questions and be regularly visible to the entire company. Resistance is a guaranteed fact within a transformational change effort, so prepare your leaders to deal with resistance, even obstruction and sabotage. If you understand the various stakeholder communities, it's likely that you know where the resistance is most likely to surface. You can then build proactive tactics to deal with your change management strategy and create regular milestone dates for sharing progress (and perhaps setbacks) that keep stakeholders and employees "in the know." This makes them feel like they are a part of the process from start to finish.

 

ALIGN STRUCTURES AND REWARDS

A company structured by functions will be challenged to overcome silo mentality and behavior. Power conflicts will arise, and a political change management strategy may be required, depending upon the culture of the organization. When undertaking a transformational change effort, a company must develop messaging and communications, supported by appropriate incentives, that create a shared vision and an alignment of executive leadership. Without such a comprehensive framework, you can expect the organization to take much longer to achieve its goal or value realization. And as a result, more resources (time, money, and staff) will be required to make the change last.

 

The second component in this change management requirement is the alignment of a reward  system. So many organizations target value realization as a transformation goal but forget that there may be functional incentives in place that are in direct conflict. Having too many reward systems in place will drive only functional agendas. Instead, be clear and drive company metrics around the broader transformation. Reduce narrower scorecard metrics. Simply stated, if you do not change direction, you may end up where you were heading.

 

BUILD CAPABILITIES

A 2012 survey by Crimson & Company in the UK found that 80% of employees operating in an organization in the midst of transformational change felt that the leadership style needed to change. The most commonly identified attribute was to move from a directive to a transformational management approach. This shift may require hiring or elevating talent that knows how to lead an organization through the transformational journey. Often, this leadership comes down to consistently communicating crisp and even aspirational messaging, clearly supported by proof points, to motivate the organization to be resilient and to endure the discomfort of the change.

 

When it comes to putting a multiyear, multigenerational project approach into play, it is wise to bring in an experienced team to enable long-term success.

 

Recognize that existing leadership may not have the skills for leading a transformational change and provide them with a coach or consultant who can help plot the journey and guide them through the change. In the future, they will become the "experienced" leaders, so don't ask them to learn on their own while the transformation needs to be under way. If you do, you can expect errors that could prove too costly to absorb.

 

REALIZING THE FUTURE

When transformation takes place, it's a fact that some strong talent will leave the organization, often because they cannot withstand the uncertainty. You will need to prepare your high-potential workforce to step in when the moment presents itself.

 

The company must devote time to training people at all levels, reinforcing its commitment to them and their future in the new organization. The training may be functionally specific, especially if the transformation sets new outcome expectations for the functions. Or it can focus on broader development topics like process management, change management, communication, and even diplomacy. Just make sure to focus on developing leaders within the company.

 

To sustain transformational change, you must implement tools such as communities of practice and regular town halls, frequently communicating up, down, and across the company to reinforce the change that has occurred and the benefits that have been realized.

 

If you take away only one message from this article, let it be this: To achieve transformational change, you must make change management a top priority.

 

    —— MWORLD SUMMER 2014

 

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